7 U.S.C. § 1727d — Local currency accounts

Page 987 TITLE 7—AGRICULTURE § 1727d multiyear utilization proposal regarding value and amount of commodities proposed to be distributed, in- tegration with other forms of development assistance, and non-replacement of other programs. 1979—Subsec. (a). Pub. L. 96–53 struck out ‘‘for each year such funds are to be disbursed’’ after ‘‘on an an- nual basis’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title. EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–53 effective Oct. 1, 1979, see section 512(a) of Pub. L. 96–53, set out as a note under section 2151 of Title 22, Foreign Relations and Inter- course. EFFECTIVE DATE Section effective Oct. 1, 1977, see section 215 of Pub. L. 95–88, set out as an Effective Date of 1977 Amend- ment note under section 1702 of this title. § 1727c. Direct uses or sales of commodities Agricultural commodities provided to a least developed country under this section— (1) may be used in such country for— (A) direct feeding programs, including pro- grams that include activities that deal di- rectly with the special health needs of chil- dren and mothers consistent with section 2151b(c)(2) of title 22, relating to the Child Survival Fund; or (B) the development of emergency food re- serves; or (2) may be sold in such country by the gov- ernment of the country or the Administrator (or their designees) as provided in the agree- ment, and the proceeds of such sale used in ac- cordance with this subchapter. (July 10, 1954, ch. 469, title III, § 304, as added Pub. L. 95–88, title II, § 211(a)(2), Aug. 3, 1977, 91 Stat. 550; amended Pub. L. 95–424, title II, § 202, Oct. 6, 1978, 92 Stat. 955; Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3642.) Editorial Notes PRIOR PROVISIONS A prior section 304 of act July 10, 1954, ch. 469, title III, 68 Stat. 459, enacted section 1693 of this title, prior to repeal by Pub. L. 89–808, § 2(D), Nov. 11, 1966, 80 Stat. 1535. AMENDMENTS 1990—Pub. L. 101–624 amended section generally, sub- stituting present provisions for provisions relating to furnishing of credit by Commodity Credit Corporation to participating country for purchase of commodities, payment by recipient government, waiver of require- ments to meet humanitarian or developmental objec- tives, and payment of freight charges of relatively least developed countries. 1978—Subsec. (d). Pub. L. 95–424 added subsec. (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–424 effective Oct. 1, 1978, see section 605 of Pub. L. 95–424, set out as a note under section 2151 of Title 22, Foreign Relations and Inter- course. EFFECTIVE DATE Section effective Oct. 1, 1977, see section 215 of Pub. L. 95–88, set out as an Effective Date of 1977 Amend- ment note under section 1702 of this title. § 1727d. Local currency accounts (a) Retention of proceeds To the extent determined to be appropriate by the Administrator, revenues generated from the sale, under section 1727c(2) of this title, of agri- cultural commodities provided under this sub- chapter shall be deposited into a separate ac- count (that may be interest bearing) in the re- cipient country to be disbursed for the benefit of such country in accordance with local currency agreements entered into between the recipient country and the Administrator. The Adminis- trator may determine not to deposit such reve- nues in a separate account if— (1) local currencies are to be programmed for specific economic development purposes listed in section 1727e(a) of this title; and (2) the recipient country programs an equiv- alent amount of money for such purposes as specified in an agreement entered into by the Administrator and the recipient country. (b) Ownership and programming of accounts The proceeds of sales pursuant to section 1727c(2) of this title shall be the property of the recipient country or the United States, as speci- fied in the applicable agreement. Such proceeds shall be utilized for the benefit of the recipient country, shall be jointly programmed by the Ad- ministrator and the government of the recipient country, and shall be disbursed for the benefit of such country in accordance with local currency agreements between the Administrator and that government. (c) Overall development strategy The Administrator shall consider the local currency proceeds as an integral part of the overall development strategy of the Agency for International Development and the recipient country. (July 10, 1954, ch. 469, title III, § 305, as added Pub. L. 95–88, title II, § 211(a)(2), Aug. 3, 1977, 91 Stat. 550; amended Pub. L. 95–424, title II, § 203, Oct. 6, 1978, 92 Stat. 955; Pub. L. 96–53, title II, §§ 204(b), 206, Aug. 14, 1979, 93 Stat. 369; Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3643.) Editorial Notes PRIOR PROVISIONS A prior section 305 of act July 10, 1954, ch. 469, title III, 68 Stat. 459, enacted section 1694 of this title, prior to repeal by Pub. L. 89–808, § 2(D), Nov. 11, 1966, 80 Stat. 1535. AMENDMENTS 1990—Pub. L. 101–624 amended section generally, sub- stituting present provisions for provisions authorizing deposit of funds generated from sale of commodities Page 988 TITLE 7—AGRICULTURE § 1727e into special account, providing that disbursements shall be considered payment by recipient government or as full forgiveness of repayment obligations, consid- eration of disbursements as payment with respect to credit obligations or annual repayment obligations, and application of dollar sales value of commodities against repayment obligations. 1979—Subsec. (a). Pub. L. 96–53, § 206, inserted provi- sions relating to disbursements from the special ac- count equal to the dollar value of credit furnished by the Commodity Credit Corporation under section 1727c(a) of this title. Subsec. (c). Pub. L. 96–53, § 204(b), added subsec. (c). 1978—Subsecs. (a), (b). Pub. L. 95–424 designated exist- ing provisions as subsec. (a) and added subsec. (b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title. EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–53 effective Oct. 1, 1979, see section 512(a) of Pub. L. 96–53, set out as a note under section 2151 of Title 22, Foreign Relations and Inter- course. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–424 effective Oct. 1, 1978, see section 605 of Pub. L. 95–424, set out as a note under section 2151 of Title 22, Foreign Relations and Inter- course. EFFECTIVE DATE Section effective Oct. 1, 1977, see section 215 of Pub. L. 95–88, set out as an Effective Date of 1977 Amend- ment note under section 1702 of this title. § 1727e. Use of local currency proceeds (a) In general The local currency proceeds of sales pursuant to section 1727c(2) of this title shall be used in the recipient country for specific economic de- velopment purposes, including— (1) the promotion of specific policy reforms to improve food security and agricultural de- velopment within the country and to promote broad-based, equitable, and sustainable devel- opment; (2) the establishment of development pro- grams, projects, and activities that promote food security, alleviate hunger, improve nutri- tion, and promote family planning, maternal and child health care, oral rehydration ther- apy, and other child survival objectives con- sistent with section 2151b(c)(2) of title 22, re- lating to the Child Survival Fund; (3) the promotion of increased access to food supplies through the encouragement of spe- cific policies and programs designed to in- crease employment and incomes within the country; (4) the promotion of free and open markets through specific policies and programs; (5) support for United States private vol- untary organizations and cooperatives and en- couragement of the development and utiliza- tion of indigenous nongovernmental organiza- tions; (6) the purchase of agricultural commodities (including transportation and processing costs) produced in the country— (A) to meet urgent or extraordinary relief requirements in the country or in neigh- boring countries; or (B) to develop emergency food reserves; (7) the purchase of goods and services (other than agricultural commodities and related services) to meet urgent or extraordinary re- lief requirements; (8) the payment, to the extent practicable, of the costs of carrying out the program author- ized in subchapter V; (9) private sector development activities de- signed to further the policies set forth in sec- tion 1691 of this title, including loans to finan- cial intermediaries for use in making loans to private individuals, cooperatives, corpora- tions, or other entities; (10) activities of the Peace Corps that relate to agricultural production; (11) the development of rural infrastructure such as roads, irrigation systems, and elec- trification to enhance agricultural production; (12) research on malnutrition and its causes, as well as research relating to the identifica- tion and application of policies and strategies for targeting resources made available under this section to address the problem of mal- nutrition; and (13) support for research (including collabo- rative research which is mutually beneficial to the United States and the recipient country), education, and extension activities in agricul- tural sciences. Section 1306 of title 31 shall not apply to the use under this subsection of local currency proceeds that are owned by the United States. (b) Support of nongovernmental organizations To the extent practicable, not less than 10 per- cent of the amounts contained in an account es- tablished for a recipient country under section 1727d(a) of this title shall be used by such coun- try to support the development and utilization of nongovernmental organizations and coopera- tives that are active in rural development, agri- cultural education, sustainable agricultural pro- duction, other measures to assist poor people, and environmental protection projects within such country. (c) Investment of local currencies by nongovern- mental organizations A nongovernmental organization may invest local currencies that accrue to that organiza- tion as a result of assistance under subsection (a), and any interest earned on such investment may be used for the purpose for which the assist- ance was provided to that organization without further appropriation by the Congress. (d) Support for certain educational institutions If the Administrator determines that local currencies deposited in a special account pursu- ant to this subchapter are not needed for any of the activities prescribed in paragraphs (1) through (13) of subsection (a) or for any other specific economic development purpose in the recipient country, the Administrator may use those currencies to provide support for any in- stitution (other than an institution whose pri- mary purpose is to provide religious education)